HB 691 changes how Tennessee financial institutions calculate tax credits for loans to housing entities. It shifts the calculation from a single "unpaid principal balance" to a "month-end average unpaid principal balance" over each loan's life. This affects financial institutions providing qualified loans for eligible housing activities, with credits now set at 3% annually for standard loans or 5% for low-rate loans. The change applies to the institution's fiscal year and ends after 15 years or the loan's maturity, whichever comes first. The bill took effect January 1, 2026.
SB 207 creates a new "farmland preservation fund" within Tennessee's state budget to support the long-term protection of agricultural and forested land. The fund provides grants to help farmers and foresters place permanent conservation easements on their property - legal agreements that prevent development while allowing farming or forestry activities. These grants can be awarded directly to landowners or to qualified nonprofit organizations (like 501(c)(3) groups) that hold the easements, with requirements including proof of the easement agreement and ongoing agricultural use. The Tennessee Department of Agriculture will manage the fund, and unspent money will carry forward annually instead of reverting to the general budget.
SB 773 prevents development permits from expiring when lawsuits challenge them. It pauses the "vesting period" (the timeframe protecting approved projects) during ongoing court cases, ensuring developers retain their project rights. This directly affects property developers and construction companies with permits facing legal disputes. The law creates certainty for development timelines by halting the expiration clock while litigation proceeds.
SB 110 expands an existing residential pilot program for people with disabilities to include the eastern part of Tennessee, which previously only covered the western and middle regions. It requires one facility in each grand division (eastern, middle, western) and sets specific eligibility rules for eastern division participants, including a minimum 26-acre property in a county with 108,600-108,700 residents (per 2020 census), offering services for up to 60 additional adults with intellectual/developmental disabilities, and dedicating 25% of homes to inclusive housing. Applications for eastern division participation must be submitted by March 31, 2026, with facilities needing completion by June 30, 2028. The bill modifies licensing and reporting requirements for these facilities under Tennessee’s disability and aging department.
HB 331 amends Tennessee Code Annotated Section 13-23-121 to increase the Tennessee Housing Development Agency's (THDA) maximum bond issuance limit from $4 billion to $6 billion. This change directly enables THDA to issue more bonds for financing affordable housing loans, primarily benefiting low- and moderate-income Tennessee residents seeking below-market interest rate mortgages. The bill's key provision adjusts the statutory cap to address growing demand for these housing programs, which THDA has managed within the previous limit since 2008. The increase took effect on May 2, 2025, after receiving legislative and gubernatorial approval.
SB 305 prohibits organizations receiving state financial assistance for programs or activities from denying benefits, excluding participants, or discriminating against eligible individuals based on race, color, religion, or national origin. This law directly affects state-funded programs, such as those providing social services, housing, or community support. The bill amends Tennessee Code Annotated, Title 4, to establish this non-discrimination requirement as a legal standard. It applies to all entities receiving state funds, ensuring equal access to services for all eligible residents. The bill passed the Tennessee Senate unanimously on March 17, 2025, but remains pending in the House.
HB 452 changes Tennessee's eviction process for cases where a tenant hasn't paid rent. It requires that trials must be held within 14 days of the landlord filing the case and limits hearings to only rent-related issues, such as lease terms and payment history. After a court rules in the landlord's favor, the tenant must move out within seven days of receiving the court order, and the landlord can request immediate sheriff removal if the tenant doesn't comply. This bill affects tenants and landlords facing nonpayment evictions and takes effect on July 1, 2025.
HB 323 would change the standard of proof required for homeowners to challenge foreclosure sale prices in Tennessee. Currently, debtors only need to show the sale price was below fair market value by a "preponderance of the evidence" (more likely than not). The bill would raise this standard to "clear and convincing evidence," making it harder for homeowners to rebut the legal presumption that foreclosure sale prices equal fair market value. This change would take effect July 1, 2025, and directly affects homeowners seeking to contest foreclosure sales.
